YRC Freight | 2010 Stock options have been granted

wolf

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[quote author=Baldy17 link=topic=79280.msg824010#msg824010 date=1272033384]
I believe that is correct Wolf, but what I'm not sure about is the first MOU 2009 strike price of 3.74 will be affected by the reverse split, I don't think that one will change.
[/quote]I don't have a clue on that. Course of they do I'll end up with 3 shares at $37.40. A song comes to mind....."nothing from nothing leaves nothing" We're in the money now. :dance:
 

R-14Driver

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[quote author=wolf link=topic=79280.msg824021#msg824021 date=1272035645]
[quote author=Baldy17 link=topic=79280.msg824010#msg824010 date=1272033384]
I believe that is correct Wolf, but what I'm not sure about is the first MOU 2009 strike price of 3.74 will be affected by the reverse split, I don't think that one will change.
[/quote]I don't have a clue on that. Course of they do I'll end up with 3 shares at $37.40. A song comes to mind....."nothing from nothing leaves nothing" We're in the money now. :dance:
[/quote] :clap: :kicking:

 

ctroadrunner

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[quote author=Baldy17 link=topic=79280.msg823997#msg823997 date=1272028962]
Hey guys let's all remember that there is suppose to be a reverse stock split, so the amount of shares you will change and so will the strike price.
[/quote]Only the amount of shares can change via the reverse split-strike price is locked in.
 

truckinus

Former YRC Dallas 511
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[quote author=Boilerpeddle link=topic=79280.msg823988#msg823988 date=1272026048]
[quote author=truckinusa link=topic=79280.msg823960#msg823960 date=1272004485]
So what is the thinking:

A. Exercise the options the first day they are available and sell the first day assuming you can get something for them.

B. Exercise the first day and hold the stock for a year to avoid the higher tax rate.

C. Wait and see. Maybe until 2019.
[/quote]
A. This is really a question about whether the company will survive.

B. Are the taxes lower on profit made on stocks you hold for a year?

C. That is what I will do at least until 3/01/11.
Looks like fidelity has it set up as sort of a all in one operation where you buy/sell/payfidelityafee.


BTW The teamster literature clearly stated that they would be vested immediately after shareholder approval?
Whats up with 3/01/11
[/quote]
Yeah, the taxes are taxed at the capital gains rate rather than whatever tax bracket you are in if you hold for a year. Think I'm in the 25% tax bracket so the extra 10% isn't much really.
 

Baldy17

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Not according to fidelity, if its a 1 to 10 reverse split the strike price will go up to 4.80 a share, as will the price for share will to going 10 times the price on the close of that day, as yeterday for ex. .73 times 10 7.30.and your option price will be 4.80.
 

Boilerpeddle

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"truckinusa" said:
Yeah, the taxes are taxed at the capital gains rate rather than whatever tax bracket you are in if you hold for a year. Think I'm in the 25% tax bracket so the extra 10% isn't much really.
But this should be standard income so won't it come out in the wash when you file your taxes?
 

truckinus

Former YRC Dallas 511
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[quote author=Boilerpeddle link=topic=79280.msg824124#msg824124 date=1272065305]
"truckinusa" said:
Yeah, the taxes are taxed at the capital gains rate rather than whatever tax bracket you are in if you hold for a year. Think I'm in the 25% tax bracket so the extra 10% isn't much really.
But this should be standard income so won't it come out in the wash when you file your taxes?
[/quote]
I haven't been keeping up with it, but he capital gains rate(holding any stock for a year or longer) is 15%. Holding it for a shorter period of time falls in whatever tax bracket you happen to be in. For me its generally 25%, but could be 28% for some or higher.
 

truckinus

Former YRC Dallas 511
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[quote author=Baldy17 link=topic=79280.msg824065#msg824065 date=1272043082]
Not according to fidelity, if its a 1 to 10 reverse split the strike price will go up to 4.80 a share, as will the price for share will to going 10 times the price on the close of that day, as yeterday for ex. .73 times 10 7.30.and your option price will be 4.80.
[/quote]
Generally when there is a reverse split the overall value goes down. Don't ask me why. I have no idea. Usually a regular split makes the price increase. Don't ask me why again. Who knows a few weeks or months later what it will be sitting at. Hopefully it goes above a dollar and we don't have to talk about all this.
 

Boilerpeddle

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[quote author=truckinusa link=topic=79280.msg824130#msg824130 date=1272066002]
[quote author=Baldy17 link=topic=79280.msg824065#msg824065 date=1272043082]
Not according to fidelity, if its a 1 to 10 reverse split the strike price will go up to 4.80 a share, as will the price for share will to going 10 times the price on the close of that day, as yeterday for ex. .73 times 10 7.30.and your option price will be 4.80.
[/quote]
Generally when there is a reverse split the overall value goes down. Don't ask me why. I have no idea. Usually a regular split makes the price increase. Don't ask me why again. Who knows a few weeks or months later what it will be sitting at. Hopefully it goes above a dollar and we don't have to talk about all this.
[/quote]
Because a reverse split is seen as a desperation move and generally a bad thing and the price just goes down.
 

Boilerpeddle

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[quote author=truckinusa link=topic=79280.msg824129#msg824129 date=1272065895]
[quote author=Boilerpeddle link=topic=79280.msg824124#msg824124 date=1272065305]
"truckinusa" said:
Yeah, the taxes are taxed at the capital gains rate rather than whatever tax bracket you are in if you hold for a year. Think I'm in the 25% tax bracket so the extra 10% isn't much really.
But this should be standard income so won't it come out in the wash when you file your taxes?
[/quote]
I haven't been keeping up with it, but he capital gains rate(holding any stock for a year or longer) is 15%. Holding it for a shorter period of time falls in whatever tax bracket you happen to be in. For me its generally 25%, but could be 28% for some or higher.
[/quote]

AHA! So I might save 10 percent. That is nothing to sneeze at .
I have shied away from owning any stocks outside of an ira because of all the tax rules.
 

bigtruk_us

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Can someone answer a question?I was granted 8706 shares.I know there is nothing that says I cant cash the 2010 grant stock options.I read about a possible reverse stock split.I read about this kind of an event.now,if the company decides to do this.and say its a 1:10 ratio.that ratio would more than likely wipe my granted stock out.will there be an advanced notice of a reverse stock split?does anyone have an ickling why would we be granted something like this just to be wiped out?are we ignorant for accepting this offer?for what?a pay cut?...I haven't really grasped the idea of paycuts so that incompetent management can destroy any chances of recovery.plus other factors.all this seems to look like a one way street to no where.any one care to correct or answer my query?.
 

Boilerpeddle

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"bigtruk_us" said:
Can someone answer a question?I was granted 8706 shares.I know there is nothing that says I cant cash the 2010 grant stock options.I read about a possible reverse stock split.I read about this kind of an event.now,if the company decides to do this.and say its a 1:10 ratio.that ratio would more than likely wipe my granted stock out.will there be an advanced notice of a reverse stock split?does anyone have an ickling why would we be granted something like this just to be wiped out?are we ignorant for accepting this offer?for what?a pay cut?...I haven't really grasped the idea of paycuts so that incompetent management can destroy any chances of recovery.plus other factors.all this seems to look like a one way street to no where.any one care to correct or answer my query?.
If they do a reverse split of say 10 to 1 the price of the stock will also go up 10 times. So you will have the same value in your options. It is just that the price of the stock tends to go down after a reverse split. Kinda like bad news tends to make a stock price go down. The reverse split won't wipe out your options, just reduce the total number of options while the price of the stock will be increased and the strike price will be increased a proportionate amount.
Btw. According to fidelity the options aren't vested untill 2011.
It was Supposed to be immediate.
 

truckinus

Former YRC Dallas 511
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[quote author=bigtruk_us link=topic=79280.msg824659#msg824659 date=1272232815]
Can someone answer a question?I was granted 8706 shares.I know there is nothing that says I cant cash the 2010 grant stock options.I read about a possible reverse stock split.I read about this kind of an event.now,if the company decides to do this.and say its a 1:10 ratio.that ratio would more than likely wipe my granted stock out.will there be an advanced notice of a reverse stock split?does anyone have an ickling why would we be granted something like this just to be wiped out?are we ignorant for accepting this offer?for what?a pay cut?...I haven't really grasped the idea of paycuts so that incompetent management can destroy any chances of recovery.plus other factors.all this seems to look like a one way street to no where.any one care to correct or answer my query?.
[/quote]

Just to clarify...the reason why the initial grant is so low is because they diluted the shares when they gave stock to the bondholders. Everyone that ownerd stock got screwed and the options are worthless. I think theres a billion or so shares out there. When the reverse split comes it may be 10 to 1 or for example $1 share price is now worth $10 but you have 1 share instead of 10. What happens though is you end up with $8 for one share because the price drops usually around a reverse split. It may bounce back though in a few months following.
 
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